California Water Service Group Reports 257.1% Increase in Net Income for Fiscal Year 2024

California Water Service Group (CWT) reported significant financial growth for the fiscal year ending December 31, 2024, with net income attributable to the company soaring to $190.8 million, a substantial increase from $51.9 million in 2023. This translates to earnings per diluted share of $3.25, up from $0.91 the previous year, marking a 257.1% increase. The company's operating revenue also rose by 30.5% to $1.036 billion, driven primarily by adjustments from the 2021 General Rate Case (GRC) and increased customer consumption.

The financial performance reflects a notable recovery from the previous fiscal period, where operating revenue had decreased by 6.1% in 2023. The increase in revenue was attributed to a cumulative adjustment of $242.2 million from the 2021 GRC, which was retroactively effective from January 1, 2023. However, total operating expenses also rose by $94.3 million, primarily due to increased costs in water production, including purchased water and power, as well as higher income tax expenses.

Strategically, California Water Service Group has continued to expand its operations, serving approximately 560,100 customer connections across its regulated subsidiaries in California, Hawaii, New Mexico, Washington, and Texas. The company has also made significant investments in infrastructure, proposing over $1.6 billion in capital improvements from 2025 to 2027, with a focus on replacing aging pipelines and enhancing water quality. Additionally, the company completed the acquisition of Kukui’ula South Shore Community Services in Hawaii for $1.6 million, further expanding its service capabilities.

Operationally, the company reported a total employee headcount of 1,278 as of December 31, 2024, with a strong emphasis on maintaining a skilled workforce to support its growth. The company’s customer base has shown resilience, with a slight increase in customer connections compared to the previous year. The company also noted that its regulatory environment remains challenging, with ongoing adjustments to rates and compliance with new water quality regulations, including those related to per- and polyfluoroalkyl substances (PFAS).

Looking ahead, California Water Service Group expressed optimism about its growth trajectory, emphasizing its commitment to expanding both regulated and non-regulated water and wastewater activities, particularly in the western United States. The company plans to continue exploring acquisition opportunities and enhancing its service offerings while navigating the complexities of regulatory approvals and market conditions.